Moscow Exchange Financial Growth Presentation
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Investment and corporate highlights
Financial Resilience
■ Counter-cyclical business model coupled with robust cost control
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■ Secular growth of fees and commissions (F&C) across
complimentary F&C business lines
generate
■ Business-driven margin and collateral requirements
sustainable net interest income (NII)
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Operating income F&C/NII split of 2/1 evolving towards F&C
■ One of the highest EBITDA margins among global peers
■ Attractive dividend policy: min. payout of 60%; target payout of
100% FCFE; track record of distributing 55-89% of 2014-2019 profits
Strategic Stance
■ Low penetration of financial services indicates secular growth potential
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The world's most diversified exchange with trading in 5 asset classes
VS ~3 offered by "traditional" exchanges
Complete vertical integration of a trading engine with a clearing
house and a central securities depository makes up a unique platform
Cornerstone of the Russian financial system: MOEX brings together the
tiers of the banking system by managing ~3/4 of its total liquidity flow
The world's only exchange focused on Russian financial assets in the
market is open for competition (ex. the CSD). OTC is the main competitor
B2B business model: investors trade via locally licensed brokers and
banks. Foreign investors have SMA and ICM services at their disposal
Corporate Governance
■ A 28-year history of successful and continuous implementation of
infrastructural and regulatory reforms
■ No single controlling shareholder: free float of 63% with substantial
international participation; the largest shareholder owns <12%
■ Most Supervisory Board members are independent directors (8 out
of 12)
■ Established track record for efficient capital allocation
Operational Excellence
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All-electronic since 1997
■ Vast in-house IT expertise: ~1/3 of staff are IT developers,
supporting a CAPEX-light business model
Single-tier clearing system requires all participants to provide eligible
collateral in cash or securities to trade any asset class
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Pre-trade risk checks forestall any "fat fingers"/"flash crash" problems
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Low-cost product scalability: a new order book launch requires the
equivalent of circa USD 10 thousand
MOSCOW
EXCHANGE
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